I like talking about money, it is a fascinating subject, but in reality I am not what one may consider to be wealthy or rich; yet. Like many of us I am also busy with a process of building wealth.
I have to emphasize the word process. Process implies a plan and consistency. It also implies a long-term perspective.
It is obvious that to build wealth, we have to position ourselves in the best possible spot that makes our potential for success most likely.
Think about sports; football, ice hockey, rugby (etc).
In such sports you firstly have to arrive on the field to be able to score. You also have to assume the correct positions on the field, or else you'll miss the ball/puck/goatskin (or whatever). You also have to condition your body and mind to win, or you won't have the stamina to succeed. You probably also need a 'play', a team tactic, to use during the game. Those are variables, I am told, which underly success in sports.
It is noted that such factors don't guarantee a win; but they enhance the possibility of winning. In the same way we have to assume the correct position, mindset, and behaviors that enhance our chances of building wealth successfully. That requires us to get the basics of wealth accumulation right.
Why wealth is often built slowly
In order to accumulate wealth, we have to master a number skills and behaviors. Building sustainable wealth requires a combination of mindset, knowledge, skills and discipline.
Yet, I think that our culture of instant gratification has led many of us to expect wealth to come quickly. The media often reinforces that perspective through the telling of the stories of the next successful billionaire.
Indeed, great wealth has come quickly, for some individuals, in isolated cases. Think about Mark Zuckerburg of Facebook, and Bill Gates of Microsoft. We may also mention many lottery winners here.
But, the truth is that most people won't be able or in the position to start the next billion dollar company. So if it is unlikely for most of us to do that, what then? Should we just hope for success? Should we just give up? Or do we have to follow a different road.
The answer is that in most situations, for most wealthy people, wealth is built slowly and through a CORRECT DISCIPLINED MINDSET AND CORRECT ACTIONS. See The Millionaire Next Door: Surprising Secrets of America's Wealthy. Sorry, but this is not a get rich quick thing.
Maybe, wealth builds slowly ... just like debt. At least in my opinion.
Over the last couple of years, I have accumulated a lot of credit card debt. And I have to say, not through big ticket spending, but through an accumulation of small purchases: a coffee here, a purchase there, you know the story. Stupid, I know.
I now realize my mistake and I am busy fixing it. But the amount staggers me, how did I accumulate so much debt, I often wonder.
Fortunately, wealth may also be accumulated in a similar way; through the accumulation of one small disciplined saving at a time. Such savings need consistency, and consistency requires a system.
I recently realized that building wealth requires a sustainable system, a system that balances your current needs with future needs. A system where you can enjoy your money now, without impoverishing your future. A system that keeps you motivated in the present, as you're busy to provide for your future.
We'll look at such a system in my next posting.
Thank you for reading. If you have any suggestions to share on how to accumulate wealth sustainably, or any other comment, I would like to hear from you. Please leave your comments below.
Some recommended reading, for those interested in this topic:
On the psychology of money: A Look at Psychological Realities of Money (published on articlebase.com)
On money negative money scripts and beliefs: 10 Poor Money Beliefs You Have to Conquer
On the development of a wealth mindset: Think And Grow Rich: The Secret To Wealth Updated For The 21St Century
On timeless money wisdom: The Richest Man in Babylon: The Success Secrets of the Ancients